Prep school and falcon foundation question

I have a few quick questions about the prep school and the falcon foundation. First, if I have read correctly, then those students who do not receive an appointment are automatically considered for prep. Is the correct? How are prep nominees determined?
Also, in the latest round of materials from the AFA, the catalog states that
" young people who desire to apply for a Falcon Foundation Scholarship should send their request to ..." I thought that just like the prep school, those students who do not receive a nomination are automatically considered for a Falcon Foundation Scholarship. Is there something else that my son needs to submit that we are missing? He has had everything completed and submitted since the first part of September, including his AFROTC application. Can someone please shed some light on this?

My son is a Falcon Scholar this year, so I will try to help with your questions. First off I was also confused by that comment in the catalog....I can tell you that my son did not fill out an additional application. He did tell his ALO that he would be interested in either the prep school or a Falcon foundation scholarship if he did not receive an appointment. His ALO told him that by stating that he was interested, he opened the door to being considered. You can have your son recheck with his ALO just to ensure nothing has changed. They reward approximately 100 Falcon foundation scholarships each year. My son received his letter in mid-March.